United Heat Transfer Limited
Company
| Website 🔗 |  |
| Business Activity | Manufacture |
| Division | Capital Goods |
| Sub-class | Heat Exchangers, Pressure Vessels, and Process Flow Skids |
| Location | Nashik, Maharashtra |
| Establishment Year | 1995 |
Management
| Managing Director | Yogesh Vishwanath Patil |
| Educational Qualifications | Higher Secondary and Post Graduate Diploma in Boiler and Process Equipment Design and Engineering |
| Experience | Over 29 years of experience in the Heat Exchanger Industry |
| Annual Salary | ₹ 60 Lakhs |
| Total Number of Employees | 105 |
About
United Heat Transfer Limited (UHTL) is an Indian manufacturer specializing in the production of Shell and tube Heat Exchangers, Air-Cooled Heat Exchangers, Pressure Vessels, and process Flow Skids Equipment.
Products and Services:
Heat Exchangers:
Air Cooled Heat Exchangers / Air Cooled Condensers / CNG Air Coolers:
These exchangers efficiently cool fluids using ambient air, making them ideal for applications where water usage is limited or not feasible. They are commonly used in refineries, chemical plants, and power plants.
Shell and Tube Heat Exchangers (Oil Cooler, Inter Cooler, After Cooler):
Versatile and robust, these exchangers facilitate efficient heat transfer between two fluids. They are widely used in industries such as HVAC (Heating Ventilation and Air Conditioning), chemical processing, and power generation.
Extended Surface Heat Exchangers (Plate Fin Type):
These have an increased surface area for enhanced heat transfer efficiency. They are utilized in HVAC systems, refrigeration, and industrial processes for precise temperature control.
Process Flow Skids / Custom-Made Packages:
Tailored to specific project requirements, these assemblies integrate multiple components onto a single platform, offering convenience and space-saving solutions for various industries, including oil and gas, petrochemical, and pharmaceutical.
Engine Jacket Water Heat Exchangers with Expansion Tank (Header Tank Heat Exchangers):
Essential components of engine cooling systems, these heat exchangers regulate the temperature of coolant circulating through the engine, preventing overheating.
Charged Air Coolers (for diesel/petrol engines / Generators):
Integral to engine performance, these coolers lower the temperature of compressed air before it enters the engine, enhancing combustion efficiency and prolonging engine lifespan. They are commonly found in diesel engines, gas turbines, and turbocharged engines.
Marine Heat Exchangers:
Specifically designed for maritime applications, these heat exchangers efficiently transfer heat between different fluid streams, crucial for maintaining optimal temperatures in marine engines and systems.
Other Products:
Moisture Separators:
Designed to remove moisture from gas streams, ensuring dry and clean output, commonly employed in compressed air systems, gas processing plants, and pneumatic equipment.
Automatic Backflush Filters:
Employed for continuous filtration of liquids, these filters automatically clean themselves by reversing the flow direction, ensuring uninterrupted operation and efficient removal of contaminants.
Pressure Vessels:
Engineered to safely contain fluids or gases under high pressure, utilized in a wide range of industries such as chemical processing, oil and gas, and water treatment for storage, reaction, or transportation purposes.
Clients:
United Heat Transfer Limited serves a diverse clientele across various industries, including:
- Automotive
- Marine
- Genset
- Off-road Engines
- Shipbuilders
- Compressor
- Injection Molding Machines
- Refrigeration
- Filtration
- Petrochemicals
- Refineries
- Oil & Gas
- Nuclear
- Beverages
- Pharmaceuticals
- Pulp & Paper
- Chemicals
Manufacturing Process:
Customer Inquiry and Design Analysis:
Understanding customer requirements, including process parameters, product designs, and specifications.
Material Procurement:
Sourcing the necessary raw materials and components, ensuring quality and cost-effectiveness.
Manufacturing:
Executing the production process, including machining, cutting, welding, surface finishing, and testing.
Quality Control:
Implementing quality checks throughout the manufacturing process to meet required standards.
Packaging and Delivery:
Secure packaging and timely delivery of finished products to customers.
Customer Support:
Providing after-sales support, addressing customer queries, and ensuring satisfaction.
Continuous Improvement:
Continuously analyzing and improving processes based on feedback and market trends.
Raw Materials:
United Heat Transfer Limited utilizes a variety of raw materials in its manufacturing process, including:
- Carbon Steel
- Low Alloy Steel
- Low Temp Carbon Steel
- Aluminum
- Aluminum Alloy
- Stainless Steel
- Duplex Stainless Steel
- Super Duplex Stainless Steel
- Copper
- Cupro-Nickel
- Brass
- Gun Metal
- Copper Alloy
- Hastelloy
- Nickel
- Naval Brass
- Monel
- Inconel
- Nickel Aluminium Bronze
In addition to the above, United Heat Transfer Limited also purchases bought-out items such as structural steels, casting covers, forging, tubes, fasteners, gaskets, pipes, and plates.
Suppliers:
United Heat Transfer Limited sources its raw materials from both domestic and international suppliers. Domestic suppliers are located in Maharashtra, Gujarat, Uttar Pradesh, Karnataka, Rajasthan, and Tamil Nadu, while international suppliers are located in Italy and the UK.
Other Key Aspects:
Certifications:
- ASME “U” Stamp Certificate
- “R” Stamp Certificate
- “NB” Stamp Certificate
- HTRI Certificate
- ISO 9001:2015, ISO 14001:2015
Business Process Flowchart
Revenue – Category
Revenue – Region
Audit and Legal
Auditor’s Remarks:
The auditors have issued an unqualified opinion on the company’s financial statements
Non-Compliances and Other Issues:
Delay in Filing of GST Returns:
There have been instances of delays in filing GST returns.
Delay in Filing of EPF Returns:
There have been instances of delays in filing EPF returns.
Discrepancies in Corporate Secretarial Records:
There have been discrepancies in some corporate secretarial records relating to forms filed with the RoC and other provisions of the Companies Act, 2013.
Trademark Application Pending:
The company’s logo, UHT, is not yet registered.
Contingent Liabilities:
United Heat Transfer Limited has contingent liabilities amounting to ₹815.83 Lakhs as of July 31st, 2024. It mostly comprises bank guarantees issued to parties and as guarantors for group companies.
Legal Cases:
Cases Filed Against the Company
Cases Filed by the Company
Tax Proceedings against the Company:
Tax Proceedings:
There are 11 tax-related proceedings against the company, with a total demand of ₹30.59 Lakhs.
SWOT Analysis
Strengths
| Diverse customer base across multiple continents: UHTL has a wide range of customers located across the globe, which helps to reduce its reliance on any single market. This diversification provides stability and resilience to the company’s business operations. |
| Precision-engineered products meet industry standards: UHTL’s products are designed and manufactured with precision to meet stringent industry standards. This focus on quality ensures high product reliability and customer satisfaction. |
| Existing operational status and over 100 employees: UHTL has been operating successfully for over 28 years and has a workforce of over 100 employees. This demonstrates the company’s stability and its ability to manage and grow its operations effectively. |
Weaknesses
| Struggle to keep up with demand during peak seasons: UHTL has faced challenges in meeting high demand during peak seasons due to capacity constraints. This can lead to potential delays in fulfilling orders and may impact customer satisfaction. |
| Capacity Utilization: Underutilized capacity, indicating potential inefficiencies in production. |
Opportunities
| Expansion into emerging markets: UHTL can explore new growth opportunities by expanding its business into emerging markets in Asia and South America. These markets offer significant potential for increased sales and business development. |
| Utilization of digital marketing strategies: UHTL can leverage digital marketing strategies to reach a wider audience and promote its products online. This can help increase brand visibility and generate new business opportunities. |
| Development of eco-friendly solutions: With increasing emphasis on sustainability, UHTL has the opportunity to develop environmentally friendly heat exchanger solutions. This can appeal to a growing segment of customers who prioritize sustainability. |
Threats
| Challenges in adapting to rapidly changing market trends: As an established business, UHTL may face challenges in quickly adapting to new and evolving market trends. This can impact its competitiveness and ability to innovate. |
| Intense competition: The heat exchanger industry is highly competitive, with the presence of numerous domestic and international players. |
| Economic downturns: Economic slowdowns or recessions can negatively impact the demand for UHTL’s products and services. |
Porter’s Five Forces1
| Threat of New Entrants | LOW – MODERATE |
| The heat exchanger industry has high barriers to entry due to the significant capital investment and specialized technical expertise required. |
| Bargaining Power of Suppliers | LOW |
| UHTL benefits from the low bargaining power of suppliers as there are numerous suppliers available for its raw materials. This provides the company with flexibility in sourcing materials and negotiating favourable prices. |
| Bargaining Power of Buyers | MODERATE – HIGH |
| The presence of multiple suppliers offering similar heat exchanger products gives buyers high bargaining power. This can put pressure on UHTL to offer competitive prices and maintain its customer base. |
| Threat of Substitute Products or Services | MODERATE |
| There is a moderate threat of substitute products or services, such as cooling towers and heat pumps, which can replace heat exchangers in certain applications. UHTL needs to stay innovative and offer differentiated products to mitigate this threat. |
| Rivalry Among Existing Competitors | HIGH |
| The heat exchanger industry is highly competitive, with several large and established players vying for market share. UHTL faces intense rivalry from its competitors, requiring it to continuously improve its products, services, and operational efficiency to maintain its position in the market. |
Peer Comparison
The company’s performance on various financial and operational metrics compared to its peers is as follows:
| Metric | United Heat Transfer Limited | Patel Airtemp (India) Limited | The Anup Engineering Limited |
| Revenue from Operations (₹ in Crores) | 60.03 | 371 | 550 |
| Operating Profit Margin (%) | 16.64 | 9 | 23 |
| Return on Equity (ROE) (%) | 19.3 | 10.8 | 20.7 |
| Return on Capital Employed (ROCE) (%) | 16.2 | 14.4 | 22.6 |
| Debt to Equity Ratio | 1.81 | 0.63 | 0.03 |
Green Box
Integrated manufacturing facilities:
UHTL’s manufacturing facilities are well-equipped and strategically located, enabling efficient production and timely delivery of products. The company’s focus on quality control and adherence to industry standards ensures high product reliability.
Vendor registrations with prestigious companies:
United Heat Transfer Limited has secured vendor registrations with several prominent companies in the Oil and Petroleum industry. These registrations provide the company with access to a wider customer base and enhance its credibility in the market.
Research & Development:
The company has a dedicated research and development team that focuses on developing new technologies and designs to enhance the efficiency and performance of its heat exchangers. UHTL’s research and development efforts have resulted in several successful product launches and improvements.
Positive Operating Cash Flow:
United Heat Transfer Limited has maintained a positive operating cash flow over the past few years, indicating its ability to generate sufficient cash from its operations to cover its expenses and invest in growth opportunities.
IPO Funds:
Repayment of Debt:
The company plans to utilize a portion of the proceeds to repay its outstanding debt obligations. This will help reduce its interest burden and improve its financial position.
Working Capital Requirements:
United Heat Transfer Limited intends to use a part of the proceeds to meet its incremental working capital requirements. This will enable the company to finance its operations, manage inventory, and ensure smooth business flow.
Industry Outlook:
The heat exchanger market is expected to grow at a CAGR of 5.5% from 2020 to 2030
Amber Box
Dependence on a few suppliers:
United Heat Transfer Limited relies on a small number of suppliers for its raw materials. This dependence can create risks if any of these supplier relationships are disrupted or if there are fluctuations in raw material prices.
Capacity Utilization:
The company has significantly underutilized capacity, particularly in the Special Equipment category. This indicates potential for increased production and revenue generation as UHTL expands its operations and market reach.
Red Box
Dependence on a few key customers:
UHTL’s revenue is significantly concentrated among a few key customers. This dependence poses a risk to the company’s business operations if any of these relationships are disrupted.
Images
- The force value of “LOW” is considered good Click Porter’s Five Forces article for more information. ↩︎
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